Chap. 65.—An ACT to provide for the refunding of certain certificates of in-
debtedness of the par value of $950,000.00, issued under an act entitled
“an act to repeal an act entitled an act to anticipate by counties, or
otherwise, the construction of the State highway system, approved March
15, 1920, as amended and re-enacted by an act entitled ‘an act to amend
and re-enact an act entitled an act to anticipate by counties or other-
wise the construction of the State highway system, approved March 15,
1920, approved March 21, 1924; to provide for the issue and sale of
certificates of indebtedness of the Commonwealth of Virginia to repay the
sums advanced to the State under the provisions of the aforesaid acts and to
provide a sinking fund for the payment of the interest on the said certificates
of indebtedness and the principal thereof at maturity,” approved March 19,
1926, by authorizing and directing the issuance and sale of $950,000.00 par
value certificates of indebtedness and/or notes of the Commonwealth of Vir-
ginia; and to provide for the payment of interest on such certificates of 1n-
debtedness and/or notes, and the principal thereof at maturity. [S B 27]

Approved February 26, 1936

1. Be it enacted by the General Assembly of Virginia, as follows:

Section 1. The commissioners of the sinking fund with the ap-
proval of the Governor are hereby authorized and directed to issue and
sell certificates of indebtedness in the name of and on behalf of the
Commonwealth of Virginia of the par value of nine hundred fifty thou-
sand dollars, for the purpose of raising funds to refund certificates of
indebtedness of the State, of the par value of nine hundred fifty thou-
sand dollars, which certificates will mature on July first, nineteen hun-
dred and thirty-six, issued under an act approved March nineteenth,
nineteen hundred and twenty-six entitled “an act to repeal an act en-
titled an act to anticipate by counties, or otherwise, the construction of
the State highway system, approved March fifteenth, nineteen hundred
and twenty, as amended and re-enacted by an act entitled ‘an act to
amend and re-enact an act entitled an act to anticipate by counties or
otherwise the construction of the State highway system, approved
March fifteen, nineteen hundred and twenty, approved March twenty-
first, nineteen hundred and twenty-four; to provide for the issue and
sale of certificates of indebtedness of the Commonwealth of Virginia to
repay the sums advanced to the State under the provisions of the afore-
said acts and to provide a sinking fund for the payment of the interest
on the said certificates of indebtedness and the principal thereof at ma-
turity.’ ”

Section 2. The certificates of indebtedness authorized and directed
by this act to be issued shall be dated the first day of July, nineteen
hundred and thirty-six, and shall mature on July first, nineteen hundred
and forty-six. They shall bear interest payable semi-annually on Jan-
uary first and July first of each year, at a rate to be fixed by the com-
missioners of the sinking fund with the approval of the Governor, but
not exceeding five per centum per annum. They shall be issued in such
denominations as the commissions of the sinking fund with the approval
of the Governor may determine.

Section 3. The certificates of indebtedness issued under the provi-
sions of this act shall be lithographed or engraved and shall be signed
on behalf of the Commonwealth of Virginia by the State Treasurer and
the Comptroller, under the lesser seal of the Commonwealth. The in-
terest coupons on such of the certificates as may be issued in coupon
form, shall bear the facsimile signature of the State Treasurer, whose
signature upon such coupons may be his lithographed or engraved
facsimile signature. The said certificates of indebtedness and coupons
may be signed by the present treasurer and comptroller, or by their
respective successors in office at the time of signing, but no change in
such signature shall be necessary by reason of any change in said of-
ficers.

These certificates shall be lithographed or engraved by a company
of recognized standing, who shall either permit the plates to become
the property of the Commonwealth of Virginia, or shall, in the presence
of the Comptroller and the State Treasurer destroy the said plates.

Section 4. The said certificates may be issued in either registered or
coupon form, as the commissioners of the sinking fund, with the ap-
proval of the Governor, may determine.

Section 5. Certificates of indebtedness issued in registered form
shall be registered as to principal and interest in the office of the State
Treasurer, who shall register in books provided for that purpose the
number of each registered certificate issued under the provisions of this
act, the date and the date of issue thereof, its maturity, the amount of
each certificate, and the interest payment dates thereof, and the name
and address of the registered owner. Certificates issued in registered
form shall be transferable only by the registered owner thereof or his
duly authorized attorney in fact, upon presentation of such certificates
at the office of the State Treasurer. Interest on such registered certifi-
cates shall be payable semi-annually January first and July first of each
year, such payments to be made by checks signed by the State Treas-
urer and issued on warrants drawn by the Comptroller. The principal
of such registered certificates shall be paid upon presentation and sur-
render of such certificates, on or after.the maturity date thereof, by the
registered owner or his duly authorized attorney in fact, at the office of
the State Treasurer by checks signed by the State Treasurer and issued
on warrants authorized by the commissioners of the sinking fund.

Section 6. The coupon certificates of indebtedness shall have af-
fixed to them coupons in proper amounts representing interest to be-
come due on such certificates payable semi-annually January first and
July first of each year. The principal and interest of such coupon
certificates shall be payable to the bearer upon presentation and sur-
render of the principal certificates of indebtedness or the interest cou-
pons, as the case may be, as they severally mature, at the office of the
State Treasurer on or after their respective maturity dates by checks
signed by the State Treasurer and issued on warrants drawn by the
Comptroller, with respect to interest on certificates, and by checks
signed by the State Treasurer on warrants authorized by the commis-
sioners of the sinking fund with respect to principal of certificates.

The State Treasurer shall list all coupon certificates of indebtedness
issued under this act separately in books provided for the purpose in
each case giving the date, number, date of issue, maturity and amount
of each certificate of indebtedness issued, and shall list all registered
certificates as provided in the foregoing sections of this act.
Section 7. Both the principal and interest of the certificates of in-
debtedness issued under the provisions of this act shall be payable in
lawful money of the United States of America.

Section 8. Registered certificates issued hereunder shall be con-
vertible into coupon certificates of equal amount, upon presentation
and surrender of such registered certificates at the office of the State
Treasurer by the registered owner thereof, or his duly authorized at-
torney in fact, and the coupon certificates shall be convertible into reg-
istered certificates of equal amount upon such presentation and sur-
render of such coupon certificates with all unmatured interest coupons
attached. The conversion of registered certificates into coupon cer-
tificates and of coupon certificates into registered certificates shall be
done as at present with reference to the public debt, and the provisions
of sections twenty-six hundred and thirty-four, twenty-six hundred and
thirty-five, twenty-six hundred and thirty-six, twenty-six hundred and
thirty-seven, twenty-six hundred and thirty-eight, and twenty-six hun-
dred and thirty-nine of the Code of Virginia shall be applicable, so
far as not inconsistent with the provisions of this act, to the certificates
of indebtedness issued hereunder.

Section 9. All certificates of indebtedness issued under the pro-
visions of this act shall be exempt from taxation by the Commonwealth
of Virginia and by every county, district, or municipality thereof,
which fact shall appear on the face of these certificates as a part of the
contract with the holder thereof.

Section 10. The State Treasurer shall be the custodian of all un-
sold certificates of indebtedness issued pursuant to the provisions of
this act and of the plates from which such certificates and their interest
coupons are lithographed or engraved, if they be not destroyed as here-
inbefore provided, and also of such extra forms of such certificates and
interest coupons as the commissioners of the sinking fund, with the ap-
proval of the Governor, may deem necessary to provide to take care of
the provisions relating to the conversion of registered certificates into
coupon certificates, or the conversion of coupon certificates into reg-
istered certificates.

Section 11. The full faith and credit and taxing power of the Com-
monwwealth of Virginia are hereby pledged to secure the payment of
the principal and interest of the certificates of indebtedness issued under
the provisions of this act, and in order to pay the principal of said
certificates at maturity and the interest on the said certificates as said
interest matures it is hereby provided: There shall be set aside each
year commencing in the calendar year nineteen hundred and thirty-six,
as in the case of the public debt, from the proceeds in the State treas-
ury of the motor vehicle fuel tax and the motor vehicle license tax
now provided by law, or either, a sum sufficient to pay the interest on
the certificates of indebtedness issued hereunder, as the said interest
matures, which interest shall be paid from the funds herein required
to be set aside in the same manner as the interest on the public debt is
now required to be paid; and, in order to create a sinking fund for the
payment of the principal of said certificates of indebtedness at maturity,
there shall be annually set aside beginning July first, nineteen hundred
and thirty-six, from the proceeds in the State treasury of the motor
vehicle fuel tax and the motor vehicle license tax, now provided by
law, or either, such an amount as if repeated annually and if laid out
at interest, would be sufficient for the payment of the principal of said
certificates of indebtedness when due. The funds set aside under the
provisions of this section of this act for the payment of the principal of
said certificates at maturity shall constitute a sinking fund to be known
as the State highway system certificate of indebtedness sinking fund,
nineteen hundred and forty-six maturity, and shall be used for the pur-
pose of paying the principal of the certificates of indebtedness issued
hereunder and for no other purpose.

Section 12. The issuance of certificates of indebtedness hereunder
shall constitute an agreement for the benefit of the holders of such cer-
tificates that the tax upon motor vehicle fuels set aside for the construc-
tion or reconstruction of roads in the State highway system and the
State motor vehicle license tax, will not, while any of the certificates
issued under the provisions of this act are unpaid, be reduced to such
an extent as to prevent the amount of such taxes collectible each year
and available for the payment of interest and creating the sinking fund
hereinbefore provided over and above the cost of collection thereof
from being a sum equal at least to the interest upon such unpaid certifi-
cates of indebtedness and the sinking fund requirements for such year.

Section 13. The commissioners of the sinking fund shall sell the
certificates of indebtedness issued under the provisions of this act, for
cash at such prices not less than par, as may be approved by them.
The sums of money received from the sale of certificates of indebted-
ness issued and sold under the provisions of this act shall be paid into
the State treasury by the commissioners of the sinking fund, for credit
to the sinking fund certificates of indebtedness issued under the act
approved March nineteenth, nineteen hundred and twenty-six, here-
inbefore referred to in section one of this act, and maturing on July
first nineteen hundred and thirty-six. The commissioners of the sink-
ing fund shall make and keep a record of all certificates of indebtedness
surrendered to them and shall cancel all such certificates, and out of
the proceeds derived from the sale of the certificates of indebtedness
issued under this act shall pay to the counties, district, cities, towns
and persons by whom such certificates of indebtedness have been sur-
rendered the par value of certificates so surrendered by them respec-
tively.

Section 14. At any time after issuance of the certificates of indebt-
edness herein provided for has been authorized by the commissioners
of the sinking fund with the approval of the Governor, and before the
sale of said certificates of indebtedness, the commissioners of the sink-
ing fund with the approval of the Governor, may anticipate the receipt
of the proceeds to be derived from the sale of said certificates of in-
debtedness by issuing and selling negotiable notes of the Commonwealth
of Virginia, in coupon or registered form, bearing interest at a rate
not exceeding six per centum per annum, and maturing not later than
two years from their date, and all other provisions of this act applicable
to certificates of indebtedness herein authorized to be issued, shall apply
to such notes. Such notes may be renewed or refunded from time to
time by the issuance of refunding notes running for a like period or
not exceeding two years from their respective dates, which dates shall
be the dates of maturity of the notes for the renewal or refunding of
which such notes may be issued. If notes are issued pursuant to this
section then the certificates of indebtedness authorized by this act shall
not be sold and delivered more than thirty days prior to the date of
maturity of such notes.

Section 15. Except insofar as is prescribed in this act the commis-
sioners of the sinking fund, with the approval of the Governor, shall
determine the forms of the certificates of indebtedness and/or notes
provided for in this act and of the coupons to be attached thereto. The
commissioners of the sinking fund and the Governor are authorized to
do any and all things necessary in carrying out the provisions of this
act and in the issue and sale of the certificates and/or notes herein
authorized. All expenses incurred in carrying into effect the provisions
of this act, shall be paid out of the State highway system construction
fund upon warrant of the Comptroller drawn on the State Treasurer,
which said warrant shall be issued upon vouchers approved by the
State Highway Commissioner.

Section 16. The commissioners of the sinking fund may, with the
written approval of the Governor being first obtained, when the said
certificates of indebtedness or any part thereof are due, effect temporary
loans for and on behalf of the sinking fund provided for in section
eleven (11) of this act and pledge as security therefor any securities
in which funds of the said sinking fund have been invested, when in
the opinion of the said commissioners such action should be taken in
lieu of selling the securities so purchased; if any such loan be effected
the securities pledged shall within a reasonable time thereafter be dis-
posed of and the proceeds from such sale used to repay the money
borrowed.

2. An emergency existing because of the necessity for the protec-
tion of the public welfare and credit of the State, this act shall take
effect and be in force immediately upon its passage.